Deadline Approaching for Investors of Red Cat Holdings, Inc. (RCAT) - Contact Kaplan Fox Before July 22, 2025

Published: 2025-06-04 19:10:07 ET RCAT

Published on 06/04/2025 at 19:10

NEW YORK, NY - June 4, 2025 (NEWMEDIAWIRE) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Red Cat Holdings, Inc. (Red Cat or the Company) (NASDAQ: RCAT) on behalf of investors that purchased or otherwise acquired Red Cat securities between March 18, 2022 and January 15, 2025, both dates inclusive (the Class Period).

CLICK HERE TO JOIN THE CASE

If you are an investor in Red Cat and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (212) 329-8571.

DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than July 22, 2025 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.

According to the complaint, Red Cat manufactures drones through its subsidiary Teal Drones, Inc. (Teal) at a facility located in Salt Lake City, Utah (Salt Lake Facility). Throughout 2022, Defendants touted their development of the Salt Lake Facilitys capacity to produce thousands of drones per month or tens of thousands of drones per year.

In March 2022, Red Cat announced that Teal had been selected by the U.S. Department of Defenses [] Defense Innovation Unit and the U.S. Army to compete in Tranche 2[] of the U.S. Armys Short Range Reconnaissance Program of Record (SRR Program) . . . Defendants suggested or otherwise asserted that the SRR Programs Tranche 2 contract (SRR Contract) was worth potentially hundreds of millions to over a billion dollars in contract revenues.

On November 19, 2024, Red Cat issued a press release announcing that it had won the SRR Contract. On a subsequent conference call . . . Defendants continued to assert that the SRR Contract was worth potentially hundreds of millions of dollars, while expressing their confidence that Red Cat could realize up to $50 million to $79.5 million in revenue from the SRR Contract during its fiscal year 2025 alone.

Then, on January 16, 2025, Kerrisdale Capital (Kerrisdale) published a report alleging, inter alia , that Defendants had overstated the value of the SRR Contract, which Kerrisdale found was only worth approximately $20 million to $25 million based on U.S. Army budget documents.

On this news, Red Cats stock fell $2.35 per share, or 21.54%, over the following two trading sessions, to close at $8.56 per share on January 17, 2025.

The complaint alleges, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that (i) the Salt Lake City Facilitys production capacity, and Defendants progress in developing the same, was overstated; (ii) the overall value of the SRR Contract was overstated; and (iii) as a result, Defendants public statements were materially false and misleading at all relevant times.

WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com .

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

If you have any questions about this Notice, your rights, or your interests, please contact:

CONTACT:

Jeffrey P. Campisi

KAPLAN FOX & KILSHEIMER LLP

800 Third Avenue, 38th Floor

New York, New York 10022

(212) 329-8571

[email protected]

Laurence D. King

KAPLAN FOX & KILSHEIMER LLP

1999 Harrison Street, Suite 1560

Oakland, California 94612

(415) 772-4704

[email protected]

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/red-cat-holdings-inc/

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